AaBbCcDdE AaBbCc AaBbCcD AaB ailings Review View Tell me AaBbCcDdE v v A F V Normal No Spacing 1 2 3 4 5 Heading 1 Heading 2 Title 6 airlines job versus transporting toxic waste. 3. The city council is conducting a cost-benefit analysis for a new bridge. The construction materials for the bridge will cost $80 million. The maintenance costs are estimated at $7 million per year. The hourly wage for construction workers on this project is $19.50 per hour. These workers could have earned $15.50 in other jobs in the community and will spend 0.5 million hours completing the project. The new bridge is expected to save two lives each year, and individuals estimate the value of a life at $9 million on average. It is also expected that drivers will save approximately 225,000 hours of driving time each year. The after-tax return to a firm is 7%, and the firm's tax rate is 50%. Determine the net benefit/cost of the project. Should the city council approve the project? (Hint: Construct a table similar to +TABLE 8.4 in the textbook (latest edition)). COSTS Materials Maintenance Labor First-Year Costs Total Costs Over Time BENEFITS First-Year Benefits Total Benefit Over Time NET BENEFIT/COST $80,000,000 $7,000,000 $9,750,000 $89,750,000 $187,750,000 Drive Time $3,487,500 Lives $18,000,000 $21,487,500 $306,964,286 $119,214,286 This project has a net benefit which means that they should accept the project. 4. If the federal government gives one state a matching grant of $4 million and another 1 7 Focus